Warren Buffet was on Charlie Rose last night. He uttered the above phrase, which really struck me because I was intending to talk about my 'new books formula' today. I still will, (tomorrow), but....well, remember the above warning.
He called this an economic "Pearl Harbor" and used the word Depression. (An increase to 9% unemployment would mean a loss of 3 million jobs.) He's an Obama supporter, thinks it's disgraceful that his secretary pays more taxes than he does, equates capital gains with payroll taxes, and is quite the liberal.
Mostly he spouted common sense, but not anything I haven't heard from someone else.
He has a great deal more confidence in the economic types like Paulson and said, if anything, Congress should be forthcoming with even more money and less meddling.
He has also, I believe, invested something like 8 billion dollars of his own money into G.E. and Goldman Sachs, so he's definitely betting Congress comes through.
What I really noticed was that he had tons of cash laying around for "2 years" and was just looking for the right moment to reinvest. In essence, he's buying into blue chip companies at distressed prices.
The Sage of Omaha -- the richest man in the world -- has probably just increased his wealthy by a hefty chunk, because he was holding cash when the big guys needed it.
I've been kicking myself for not following my original instincts and trying to extract cash out of my business back in August 2006, instead waiting another 8 months, by which time it was really too late.
On the other hand, I added new books and boardgames instead, and that's proving to be the one bright spot in my store.
Still, cash is King. As Buffet just proved again.
6 days ago